The challenge of unemployment among young people in Saudi Arabia has not been addressed for a long time. As much as the country is a major producer of oil and gas products, the local youthful population is critically struggling to secure jobs within their home country. The main risk factor in the growing rate of unemployment is lack of proper education. In any case, it is not possible for either the government or the private sector to hire amateurs. In particular, the oil and gas industry demands professionals (Hoetjes par. 3).
There are thousands of employment opportunities that are created in the gas and oil industry every year. However, these jobs do not trickle down to the young Saudis. Why are companies not willing to employ the local population? Could there be a gross mismatch between the requisite skills and education background of the local people?
The conservative culture of the Arabian population can also be blamed over this mess. Why is it that gender plays an important role in determining employment rate? It is apparent that the job market in Saudi Arabia is punctuated with gender bias. There are specific categories of job groups that women cannot do. It is unimaginable that several young women have been rendered jobless due to cultural reservations. In the case of companies that do not hire the local population, the possibility could be that they demand higher pay rates and other fringe benefits. In other words, it may be costly to sustain the local labor force. Most of the private companies hire cheap labor from foreigners as part and parcel of the austerity measure.
The Saudi government should be proactive enough to accelerate the pace of employment creation because relying on the private sector for jobs might eventually lead to an impoverished society. Work areas that have been segregated in terms of gender should also be embraced by both the public and private employers. It is encouraging to note that female lawyers have been permitted to operate in Saudi Arabia after the ban was lifted sometimes back. Women can also be allowed to work at the comfort of their homes in order to avoid the rampant gender discrimination common in most workplaces.
Although uplifting gender restrictions in the job market is a brilliant idea, most Saudi nationals will argue that their government has not done enough with respect to addressing unemployment in general. Lifting the ban on certain cultural restrictions may fuel animosity between the conservative religious practices and the government of the day. Needless to say, two wrongs do not make a right. Therefore, all the measures taken by the government should be thought out keenly especially before execution. Even though quick fixes can be used to rectify the rising rate of unemployment index, the Saudi government should embark on long term and viable measures that cab address the unemployment menace once and for all. Quick fixes can be dangerous ion the long run.
The oil and gas industry in Saudi Arabia is a chief foreign exchange earner. The industry also supplies the domestic market in terms if energy needs. In fact, the real Gross Domestic Product (GDP) of Saudi Arabia is significantly sustained by the oil and gas industries as much as there are other sectors doing well in the economy.
According to the International Monetary Fund, the Saudi Arabian economic outlook will continue to remain impressive in the near future. IMF attributes the aforementioned growth rate to high revenue derived from both the crude and refined oil products. Before the close of 2011, the actual growth of the Gross Domestic Product of Saudi Arabia was slightly above 6 percent. This was possible in spite of the increased government expenditure. IMF notes that this growth rate was the highest within a span of 8 years. In 2009, the Saudi economy grew by a margin of 0.1 percent while in 2010; the growth rate skyrocketed to 4.1%.
By January 2012, the rate of inflation stood at 5.3 %. the latter rate has been stabilized for the past 3 to 4 years. It is surprising that the rate of unemployment has remained steady at 10 percent over the past few decades. These disparities are illustrated in the chart below.
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From the figure above, it is clearly evident that the high GDP growth rate has been surpassed by the rate of unemployment. The state of joblessness is dire on the ground contrary to the reports by the media. The real GDP growth should also be stabilized in order to offset youth unemployment in Saudi Arabia (Madhi and Barrientos 75).
Why is it that the Saudi government has failed to channel the oil resources towards decimating unemployment? Perhaps, we may still be compelled to point fingers at the standard of education in Saudi Arabia. Workers hired from foreign countries are mostly experts in their respective fields. Therefore, it is not practical for the Saudi government or even the private firms to recruit the local Saudi nationals who do not merit in specific employment portfolios.
Works Cited
Hoetjes, Gertjan. Unemployment in Saudi Arabia: a Ticking Time Bomb? 2013. Web. 29 Mar. 2014.
<http://muftah.org/unemployment-in-saudi-arabia-a-ticking-time-bomb/>
Madhi, Salah and Armando Barrientos. “Saudisation and Employment in Saudi Arabia.” Career Development International 8.2 (2003): 70-77. Print.
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